Sharing arrangements for sourcing, technology, and logistic services are also with the ambit of the joint venture which may be announced as early as next month. It will be similar to the JV between Wal-Mart and Bharti.
Carrefour, the second largest retailer in the world has been one of the first retail giants scouting for a suitable partner in India. Tata, Reliance, Wadias, HDFC, and real estate giants like Emmar MGF, Parswanath have been linked with it in the past for collaboration but eventually nothing had worked out.
Indian retail policy allows a 100 per cent control with FDI in cash and carry wholesale retail. Metro AG of Germany and Shoprite of South Africa are already doing business on their own. Wal-Mart Bharti JV is expected to commence operations in Punjab later this year. Tesco has also entered into a joint venture with Tata owned Trent Limited to set up cash and carry business.
Carrefour's India already set up two companies under the names of Carrefour WC & C India and Carrefour India Master Franchise Company. Earlier, it was considering setting up cash and carry business on its own, while appointing one or two franchisees in India. If the current negotiations between Carrefour and Future group materialise, it would get a head start against the other global competitors as Pantaloon Retail (India) , the retail arm of the Future Group as it is the largest listed front end retailing company in India.
Future group, which achieved sales revenue of Rs 50.5 bn in the financial year ending June 2008, plans to double it to around Rs 100 bn within two years.
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